Ripple’s cryptocurrency has regained its third place in the ranking by capitalization. For the week, those who invested in XRP received 70% of the profit. This is more than triple the income for other leading cryptocurrencies during the same time.
Leading analysts of the cryptocurrency market have noted the favorable prospects for XRP for several weeks. However, market participants did not trust these forecasts, given the history of this cryptocurrency. More than half of the tokens are owned by the firm itself, and it has often happened that Ripple dumped large amounts of XRP into the market when it started to rise on exchanges. There were even accusations of market manipulation, which caused an outflow of funds from XRP. Perhaps Ripple took note of these market signals and stopped selling its tokens. But there are other factors that have supported XRP and which can be considered the drivers of the growth.
The Official Monetary and Financial Institutions Forum (OMFIF) published a report in which it noted Ripple as an excellent alternative to the outdated SWIFT. OMFIF is an independent think tank for the study of central banks, economic policy, and public investment. The OMFIF report highlights that Ripple’s solution benefits banks and avoids currency exchange and payment processing fees.
Ripple itself has previously emphasized that its platform can be an excellent solution for launching the Central Bank Digital Currency (CBDC). And recently, Chinese President Xi Jinping, speaking at the G20 forum, called on the heads of the world’s leading states to support the trend for the launch of CBDC. China itself has recently successfully tested digital yuan. Chairman Xi noted:
“The G20 also needs to discuss developing the standards and principles for central bank digital currencies with an open and accommodating attitude, and properly handle all types of risks and challenges while pushing collectively for the development of the international monetary system.”
Amidst this, Ripple continues its efforts towards the launch of CBDC. Right now, the company has posted a vacancy for “a senior director of central bank engagements.” The job posting clarifies that Ripple is “looking for a proven leader to lead our strategy, partnerships and project work with central banks around the world with an initial focus on supporting their central bank digital currency (CBDC) initiatives on XRP Ledger”.
Obviously, it was these events that pushed XRP up. Meanwhile, analysts are still optimistic. Popular trader on the Amsterdam Stock Exchange, Michaël van de Poppe, believes XRP is heading towards the $ 2.0 mark. However, he cautiously adds that such a rise will not occur immediately, but in the next bullish cycle.